Samsung Electronics said it has found "evidence of suspected child labor" at a factory of its Chinese supplier Dongguan Shinyang Electronics.

The company conducted an investigation into the supplier after New York-based campaign group, China Labor Watch, accused it of hiring children.

Samsung decided to temporarily suspend business with the factory in question.

"It is unfortunate that the allegation surfaced despite Samsung's efforts to prevent child labor at its suppliers," Samsung said.

For Dongguan Shinyang Electronics, Samsung said it had conducted audits on three occasions since 2013, with the latest one ending on June 25, 2014. No cases of child labor were found during these audits.

In the separate investigation following the Chaina Labore Watch allegations, however, Samsung found evidences of illegal hiring process that took place on June 29. The Chinese authorities are also looking into the case.

If the investigations conclude that the supplier indeed hired children illegally, Samsung said it would permanently halt business with the supplier.